Good employees will do that, you are absolutely right here. As was the parent poster. I think it all depends on the current stage your emplyer is in, organisation-vise. Right at the start and for quite a long time only the bad ones will quit after the first feed-back rounds. As soon as these rounds become actual "warning shots", meaning they aren't constructive any more but turned into some behave-or-be-kicked-out process (sometimes around the same time the reasons for being warned tune from actual performance andmistakes to percieved value and personal and / or political issues) the good ones will leave. Eventualy you be stuck with a bunch of people who were to smart to be warned earlier on in the process and unable to leave in the later stage.

In this last group of people, those unable to leave are the really poor souls. I don't speak about those being to bad to find something else easily but rather those willing to leave but who either stuck for being to old, to sick, being the only employed person in the family, unable to move elsewhere for whatever reason.

The result for you as a company will be unmotivated (aka pissed) and unable workforce. Welcome to big company hell.

The Ribbonfarm articles on the Gervais Principle (a rather long 5 article series with part 6 in the making) provides stunning background on this. Thanks for the HNler to bring it to my attention and thanks to the author to formulate that good.